v3.22.2.2
Subsequent events
9 Months Ended
Sep. 30, 2022
Subsequent Events [Abstract]  
Subsequent events Subsequent events
The Company has evaluated subsequent events from September 30, 2022 through November 14, 2022, the date on which the September 30, 2022 condensed consolidated financial statements were available for issuance, and has determined that there are no subsequent events requiring adjustments to or disclosure in the condensed consolidated financial statements, other than as discussed below.

Master Franchise Agreement with Club Sports Group, LLC

On October 26, 2022, the Company entered into a Master Franchise Agreement (“MFA”) with Club Sports Group, LLC (“Club Sports”), an affiliate of KLIM, pursuant to which the Company granted Club Sports the master franchise rights for F45 in Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom. In exchange, the Company will receive certain fees and royalties, including a percentage of the revenue generated by Club Sports. In accordance with the agreement, F45 will assign existing franchise agreement rights to approximately 103 studios previously signed by the Company.

Lawsuit by DB Ventures Limited

On October 19, 2022, DB Ventures Limited and ABG-Shark LLC filed a complaint (Case No. 22STCV33846) against F45 Training Holdings, Inc. alleging breach of contract in connection with certain promotional agreements with David Beckham and Greg Norman, respectively. The company disputes these claims and intends to vigorously defend itself. The litigation is preliminary in nature and involves substantial uncertainties, therefore, there can be no assurance that such legal proceedings will not have a material adverse effect on our business, results of operations, financial condition, or cash flows.